Shakuhachi, Popcherry, LuxeStyle attract multiple consumer complaints

Nikki wanted the perfect dress for a friend's wedding last December. So to be safe, she placed her order for a black, full-length dress by Australian label Shakuhachi more than a month earlier, believing it would allow plenty of wriggle room for the 10-day shipping period.

But now, almost three months after the wedding, the 26-year-old social worker still hasn't received the dress or the refund of $171 she has long since requested.

"I ordered it and received a confirmation email ... but after about two weeks I hadn't heard anything. I tried calling head office a few times, but it always rang out. They let me down at every stage, " said Nikki, who has asked not to use her surname.

"When they started responding they said it had definitely been shipped, which was a lie because it never got to me ... so I asked for a refund."

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Nikki paid for a dress through online store Shakuhachi that never arrived. Credit:Penny Stephens

In January, Nikki realised her refund had never been issued and despite multiple requests she has still received nothing. She has begun a dispute resolution process with PayPal, through which she paid.

Shakuhachi was one of three online women's fashion retailers to feature on NSW Fair Trading's January Complaints Register, released this week.

Other retailers included the online subscription site Popcherry, which received 14 complaints in the month and LuxStyle, which was the subject of a public warning from the Australian Competition and Consumer Commission on Thursday.

"The majority of the complaints relate to the supply of goods, supply of unsolicited goods and services, misleading and deceptive conduct and deducting monies from customers' bank accounts without their authorisation," a NSW Fair Trading spokeswoman said.

Annie McFarlane who is still waiting on a Shakuhachi delivery which was ordered nearly three months ago.

Shakuhachi was the subject of 27 complaints in January. However many more complaints about the brand can be found online.

Sydney resident Diana Pham described her experience as "bad from the start".

Shakuhachi was listed on the NSW Fair Trading Complaints Register in January, for complaints largely related to late and undelivered orders.

"They were listing things online when they didn't have the stock ... but they still took my money," she said.

After weeks Ms Pham eventually gave up chasing the brand and had to fight for a refund.

Illustration: Matt Golding.

"I definitely wouldn't shop with them again."

Annie McFarlane has also battled with the retailer, who, she says "keeps passing the buck".

"I ordered two jumpsuits and a dress nearly three months ago, and I'm still waiting on the dress," she said.

A Shakuhachi spokeswoman said the brand had experienced an "unexpected overwhelming response" to its new online store.

"We have engaged further resources to meet the increase in demand ... and management is committed to ensuring that, moving forward, all orders are dispatched without delay."

According to the National Australia Bank, Australians spent more than $20 billion online for the first time in 2016, with online fashion sales growing almost 20 per cent in the year.

Retailer Popcherry says it is this growing and fast-changing market that has resulted in challenges and subsequent consumer complaints.

"Tens of thousands of Australians shop with us every year ... but because we offer a new way for people to shop we get a lot of customers who aren't used to it."

The basis of the Popcherry model is a "VIP" subscription, through which users are charged $50 a month in store credit, giving them access to deals like $1 accessories, or $25 dresses which usually retail for $70.

The site's FAQ outlines that users can shop without a membership, and members can elect to pause payments.

However confusion appears to present at the checkout, where many shoppers argue that they have unwittingly been signed up to a VIP account.

"Popcherry mislead you into thinking that you sign up for promotional advertisements via emails when they ask you to join. Then they start taking money," wrote one customer, Sheryn, on a product review forum.

Popcherry's spokesman said it was apparent that the monthly membership was "confusing people" and needed to be "clearer".

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"I've tried to hit customers in the face with the membership notice, pop-ups at the checkout, disclaimers on the cart page, but it doesn't work."

He said the retailer was in "close contact" with Fair Trading and was making improvements to overcome the "teething" issue.